by RAHIMI YUNUS/ graphic by M ZUKRI
The Sarawak state government and Petroliam Holdings Bhd (Petronas) have concluded negotiations of a commercial settlement after resolving differences over the imposition of state sales tax on petroleum products and other oil and gas (O&G) matters.
The commercial settlement which was executed today provides Sarawak with a greater share of revenues from O&G found and produced in the state.
The signing ceremony was witnessed by the prime minister (PM) Tan Sri Muhyiddin Yassin and Sarawak chief minister Datuk Patinggi Abang Johari Open among others
It also provides for a more active involvement by the state in the O&G industry through the management of onshore oil and gas resources by Petroleum Sarawak Bhd (Petros) and investment by the state-owned company in the upstream ventures in offshore areas.
“Both the Sarawak state government and Petronas, continuing its current role as Malaysia’s national oil company, remain committed to working together to create and maintain a stable, conducive business and investment environment for the sustainable growth of the O&G industry, both upstream and downstream in Sarawak.
“Towards this objective, the agreement provides for a consultative framework whereby both parties will be able to jointly discuss and deliberate on matters of importance to the O&G industry including those which affect the interests of the state,” Sarawak State Secretary Datuk Jaul Samion and Petronas president and group CEO Tengku Muhammad Taufik Tengku Aziz said in a joint statement.
Meanwhile, Muhyiddin also added in a statement that the settlement agreement will be a new start to further invigorate O&G industry in Sarawak and create new business opportunities.
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